Research Tax Credit for Manitoba Canola Growers 2023

March 22, 2024 – Farmers are entitled to obtain a federal tax credit on canola check-off deductions that are used to support Research & Development. The government allows 80% of the total qualifying research investment to be claimed as eligible for the tax credit.

For the Manitoba Canola Growers Association, only part of our R & D qualifies for the tax credits. Only research that is done by a federally-approved research facility, such as universities and the government agricultural research facilities, qualifies for this tax credit.

The rate for canola research in Manitoba in 2023 is 15.2%. 

To claim the federal tax credit on your tax returns, you must file a T2038 (IND) for farm proprietorships or a T2SCH31 for farm corporations.

The investment tax credits earned maybe used as follows:

• Offset federal taxes owing in the current year;
• If no taxes are owing, a portion may be refunded to you in that year, if you are an individual, or all of the credit may be refunded if you are a corporation;
• Carried forward up to 20 years to offset federal taxes;
• Carried back up to 3 years to reduce federal tax paid in those years.

For more information on the process of claiming the tax credit, please consult your accountant or visit the Canada Revenue Agency website.

Please Note: A farmer may not claim investment tax credits (ITC’s) on any portion of check-off that has been refunded by the Manitoba Canola Growers.

The reported canola check–off that was deducted from a farmer’s cash ticket and is eligible for the tax credit from 2012-2023 is as follows:

 

2023, 15.2%	2022, 14.2%	2021, 14.7%	2020, 14.6%	2019, 13.5%	2018, 13.7%
2017, 13.5%	2016, 11.14%	2015, 5.66%	2014, 11.5%	2013, 9.06%	2012, 17.71%

MCGA is farmer funded, farmer focused. Driving success for Manitoba canola farmers through research, market development, advocacy and outreach.

For further information please contact MCGA’s office in Winnipeg at (204) 982-2122.